Nigerian Sectoral Output Growth Affected by Fiscal Policy and Oil Price Shocks

Abstract

This study examined the effects of oil price shocks and Nigeria's fiscal policy on the expansion of industrial production. Secondary data was used in this investigation. The Central Bank of Nigeria's (CBN) Statistical Bulletin provided the pertinent information. According to the results of the multiple regression, the calculated F-statistic with the corresponding probability value (F (6, 17) = 1472.99, Prob > F = 0.0000) and adjusted R2 (0.9965) indicated that industrial output is positively impacted by government spending (β =.5088284), oil price shocks (β =.0078315), government revenue (β =.3576268), the foreign exchange rate (β =.0893303), and external reserves (β =.0055062). However, at p > 0.05, external debt has a negative and negligible impact on industrial output (β = -.0748426). The study suggests that the government should think about reorganizing its fiscal policy because there was a positive and significant correlation between it, oil price shocks, and industrial output.